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- Ripple’s recent report highlights that payments represent the primary use case for crypto holdings and projects a significant growth in tokenized assets, reaching a valuation of $16 trillion by 2030.
- The report also showcases the increasing interest in tokenized assets and decentralized finance (DeFi) among finance leaders and industries, which will likely drive innovation in the coming years.
Payment Dominance in Crypto Utilization
Ripple, a leading company in the blockchain technology sector, recently published the latest edition of its insightful report. Titled “Crypto Trends in Business and Beyond,” the report accentuates the role of payments as the primary usage for digital assets and anticipates a surge in the tokenized assets market, reaching a staggering value of $16 trillion by 2030.
This second edition in the series offers valuable insights into worldwide sentiments and perspectives towards digital assets, cryptocurrencies, and blockchain technology. With data obtained from surveying over 1,700 finance leaders hailing from financial institutions and enterprises, the report is divided into three sections: Tokenize, Manage, and Move. The areas of focus include decentralized finance (DeFi), tokenization, Central Bank Digital Currencies (CBDCs), and payments.
A critical finding from the report states that payments are the dominant use case for digital assets. This signifies that a majority of individuals involved in the crypto domain use digital assets for payments. As per the survey, 44% of global finance leaders perceive payments as the most mature and probable pathway towards crypto adoption.
They particularly emphasize the advantages of swift payments and cost-effectiveness for integrating cryptocurrencies into cross-border transactions.
Tokenization: A Business Opportunity Worth $16 Trillion
Moreover, the report unveils the escalating expectations for tokenizing real-world assets. According to a 2022 report by Boston Consulting Group, the tokenization of illiquid assets could manifest into a $16 trillion business opportunity by the end of this decade.
The report’s optimism regarding tokenization is echoed by 72% of respondents, who plan to utilize tokenization in their firms for innovation over the next three years. This includes industries like banking, manufacturing, media, and entertainment. Financial leaders display a positive outlook regarding the impact of tokenization on securitized assets such as mortgages and asset-backed securities, while enterprises recognize its potential in the metaverse and event ticketing.
DeFi: The Key to Future Innovation
The growing interest in decentralized finance (DeFi) among financial institutions is another salient finding of the report. Although still a developing area, 76% of finance leaders are interested in institutional DeFi as a means to drive innovation in areas like risk management, liquidity, and identity.
DeFi’s potential to enhance operational efficiency, data management, financial flexibility, and access to continuous markets particularly appeals to finance leaders. While the report highlights widespread enthusiasm for crypto and digital assets, it does not overlook the challenges lying ahead, such as privacy concerns, regulatory clarity, risk management, and price volatility.
Ripple underscores the necessity to educate financial institutions, governments, and businesses about the potential and significance of crypto in expediting the Internet of Value.